Investigating business relief and businesses: Introduction
You should start your investigation by looking at the information on form IHT413 or form D38 (IHTM25012), then check the instructions on 100% relief cases (IHTM25021) to see if 100% business relief applies.
In your investigation you should review all the information that is available to you. This will include the
- deceased’s/transferor’s stated occupation,
- information provided on form IHT 412, IHT413 or form D38, (IHTM25012)
- information provided about the deceased’s/transferor’s business activities,
- information provided in any business accounts (IHTM25052),
- terms of any partnership deeds (IHTM25092) that may exist, and
- information in other HMRC files such as Income Tax or company files, other Inheritance Tax files for the taxpayer, for example a lifetime file or for other members of the family/ business.
All this information will help you to establish whether the deceased/transferor meets the conditions to qualify for business relief and, if so, the rate of relief and the extent to which the value transferred (IHTM04028) is entitled to relief.
If relief is not due you should review all the available information to establish the value of the business interest.